I totally disagree. Hulman Center is an excellent basketball facility. There isn't a bad seat in the house, and the acoustics in the building provide an outstanding atmosphere if there's a big crowd. Unfortunately, 2,000 people sitting in a space for 10,000 makes for an awful atmosphere. But that's not the fault of the facilities.
Now the students should all be together at one end, from the floor to the roof. Move the band to the other end (or move all the students to the other end if you have to keep the band next to the opposing team's bench), but I'll agree that the students should be together. Once again, if any students actually showed up to games, this would be a moot point. 50 students in a section that seats 3,000 is pretty lame. It would be impossible to "ring the floor" with students unless you dug out the floor and added an entirely new level below the existing seats, much like they have at the Breslin Center at Michigan State. The footprint of the building doesn't provide enough room to do that, I don't think. Nice idea, but not gonna happen...
If you want to talk atmosphere, yeah, we have a terrible one. But our facility is great. I'd rather watch a ballgame there than at any other basketball venue in Indiana...